Butters Pivots to Light Industrial in Boca Development
Butters Group received zoning approval to construct two 35,800-square-foot light industrial buildings in Boca Raton's Park at Broken Sound, targeting tech and pharmaceutical companies. The project replaces plans for a 100-foot office tower on the 6.8-acre site.
Coconut Creek-based Butters Group has secured zoning approval to develop two-story light industrial buildings in Boca Raton, marking a strategic shift from previously approved high-rise office construction in the Park at Broken Sound area.
The company, led by president Malcolm Butters, will construct two buildings totaling 35,800 square feet each at 1150 Northwest Broken Sound Parkway. This represents a significant departure from the 157,900-square-foot office tower and six-level parking garage that New York-based Mutual of America Life Insurance Company had approved for the site in February of last year.
Butters acquired the 6.8-acre eastern portion of the 11.7-acre tract for just under $6.9 million in November, following Mutual of America's decision to sell the entire property for nearly $24 million across two transactions. The western 4.75-acre section was purchased by Ram Realty Advisors for $16.9 million, or approximately $3.6 million per acre.
Ram Realty Advisors, the Palm Beach Gardens-based investment firm headed by Casey Cummings, plans to develop a seven-story, 287-unit apartment complex on their portion. The residential project will include 243 market-rate units, 29 affordable units, and 15 workforce units, plus 2,000 square feet of retail space and parking facilities.
The Butters development targets growing demand for flexible industrial space among technology and pharmaceutical companies in South Florida. At least half of each building will accommodate office functions, with the remainder designed for light industrial uses. The company expects to attract building contractors, software engineers, and research and development firms to the facility.
Market conditions support this strategic direction, with office services industrial buildings commanding $19.94 per square foot annually in southern Palm Beach County during the first quarter, according to Colliers data. This exceeds the $18.25 per square foot rate for warehouse distribution space. The vacancy rate for office-service industrial properties stands at 4.6 percent, compared to 7.2 percent for traditional warehouse facilities.
Butters emphasized that the development serves small-scale users rather than major distribution operations. While city staff recommended restricting box trucks from the property, Butters noted that tenants would need occasional access for material transport, though the loading bays are too small for distribution center operations.
The site plan modification received unanimous approval from Boca Raton's Planning and Zoning Board and awaits city council confirmation. Ram's portion contains a 71,000-square-foot office building from 1984 that will be demolished for the apartment development.
Beyond this project, Butters maintains active development interests across South Florida. The company is co-developing a 100,000-square-foot, 25-court pickleball and padel facility with New York-based CityPickle, scheduled for completion this fall. Additionally, Butters serves as general contractor for Hoerbiger Corporation of America's office and distribution hub in Delray Beach, built on 14.2 acres that Butters previously sold to the Swiss manufacturer for $20 million.
